Imerman likely to jump at WestLB's W&M stake THE departure of Robin Saunders from WestLB this week is likely to hasten the company’s expected sale of its 30 per cent stake in Whyte & Mackay - and according to City sources, Vivian Imerman, W&M’s chairman and chief executive, is to be offered the shares.
Imerman already owns 60 per cent of the company, and WestLB’s stake is believed to be worth around £30 million.
A spokesman for the firm was reported yesterday as saying Imerman "would be prepared to buy the shares, if the price was right".
The remainder of the firm is owned by former managers and WestLB bankers who led the £200m management buyout of the distiller in 2001.
WestLB’s plans to sell its stake have been bubbling since August. Imerman, as chief shareholder, was always expected to be given preemptive rights, or first call, over West LB’s stake when it becomes available.
However, if he chooses to turn down the offer, it could clear a way for another investor to move in, which the South African would be keen to avoid.
The firm, which has 700 staff in Scotland and owns brands including The Dalmore and Isle of Jura as well as its flagship whisky, has been spending liberally this year on a high-profile marketing and advertising campaign.
Last month, it announced that sales had leapt in the four months to the end of August.
The company sold 20,000 cases south of the Border for £2.4m during the period, compared with just 3,500 cases for £447,000 last year, fuelled by a new distribution deal with the UK’s top five supermarkets.
Last week it secured a deal to distribute its Absolut Vodka in Indian duty-free outlets from next year. Articles Courtesy of The Scotsman
Imerman rebuffs talk of W&M stake sale VIVIAN Imerman, chief executive of Whyte & Mackay, last night played down suggestions that a large stake in the whisky distiller could change hands before Christmas.
Imerman, who has built his stake in the business up to 60 per cent, has pre-emption rights over German bank WestLB’s 30 per cent share.
The bank is said to be nearing an exit from both Whyte & Mackay and Odeon, the cinema chain. Imerman told The Scotsman: "This is without foundation at this stage. Nothing can happen without my knowledge and I am not aware of it."
The remaining 10 per cent of the shares are owned by the WestLB team who led the group’s initial buyout, headed by American financier Robin Saunders. Articles Courtesy of The Scotsman
Cardhu scandal turns whisky industry sour The current row highlights the need for a statutory body to oversee the whisky industry, argues Pip Hills
The people who run Scotch whisky like their secrets. While many distilleries are open to visitors, we rarely get a glimpse of the inner workings. That is until the last few weeks, with the Cardhu malt scandal.
Diageo, the giant drinks company which owns the brand, has been at odds with the rest of the industry over its intention to continue to market Cardhu as a pure malt instead of a single malt. There have been questions in parliament. A lot of heat has been generated, but not much light.
The law is not much use here. There is no regulatory authority for Scotch. There is the Scotch Whisky Association (SWA), which swung into action last week when Gordon Brown, the chancellor, proposed to stamp whisky bottles to beat tax evasion, which could cost the industry £280m annually. But it is a trade body composed of volunteers from the whisky companies.
What can legally be called Scotch whisky is defined by a Royal Commission that reported in 1909, and by penalties that teetotaller Lloyd George imposed during the first world war to keep the workers sober. It’s time to have another go. Were the Scottish parliament to appoint a Royal Commission and give statutory authority to the SWA to regulate the industry, in accordance with sensible legislation, Scotland’s second industry would get the protection it needs from overweening multinational conglomerate drinks companies that care only about their short-term stock market valuations.
Take Diageo, for example. It started the whole kerfuffle by describing Cardhu as pure malt whereas previously it had been single malt (to ease its supply problem, the company mixed in whisky from other distilleries in Cardhu bottles).
Cue general outrage. Malt’s USP has always been that the whisky from each distillery is unique. The owners of, say, Chateau Lafite, do not sneakily mix a lot of other good wines and sell them in a Lafite bottle, changing only a single word on the label.
In the case of Cardhu, the SWA has made representations to Diageo but all it has wrung from the distiller is an offer to change the colour of the label and revert to an older spelling of the name, Cardow.
By selling non-Cardhu whisky in a Cardhu bottle, the owners of just about every non-Diageo distillery say the company is confusing consumers. Diageo says in its defence that it hasn’t described it as single malt, but as pure malt, which means something different. It does, if you are party to the arcane world of whisky nomenclature, but most folk could be forgiven for not seeing much difference. Article Courtesy of The Times
£210k funding for whisky industry workplace project A Project to improve productivity and the working environment in the Scotch whisky industry is to get £210,000 of Government funding.
Employment Relations Minister Gerry Sutcliffe announced the award, from the Government's Partnership Fund, yesterday.
The three-year project was set up through a partnership between the GMB union, the Scotch Whisky Association and six leading UK whisky companies.
The aim is to improve safety, boost productivity, develop employee skills and involvement, reduce absenteeism and boost staff morale.
SWA chief executive Gavin Hewitt said: "One in 50 Scottish jobs depends on Scotch whisky and one of the industry's strengths, from the distillery to the bottling line, is its people. This initiative enhances skills and expertise across the industry."
Mr Sutcliffe said: "The Partnership Fund has an excellent track record in individual workplaces but this sectoral project is far bigger and more ambitious."
The whisky industry employs more than 10,000 workers in Scotland and supports the jobs of 65,000 people across the UK. Article Courtesy of The Press & Journal
Bid to force Brown to drop whisky plan Scottish Conservative enterprise spokesman Murdo Fraser lodged a motion at Holyrood yesterday aimed at forcing the chancellor to drop plans for tax stamps on whisky.
Gordon Brown suggested bringing in the stamps on all spirits as a way of clamping down on fraud in his pre-budget statement on Wednesday.
But the whisky industry fears it could cost up to £280million a year to impose, threatening jobs.
Mr Fraser's motion calls on the Scottish Parliament to press the executive to make representations to London. It states that parliament recognises that tax stamps would be ineffective in combating fraud, while imposing substantial costs and practical problems on the industry. Article Courtesy of The Press & Journal
Whisky industry fears £300m cost of duty stamp could hit jobs THE Scotch whisky industry reacted with dismay last night to proposals by Gordon Brown which could cost nearly £300 million a year.
It said a plan to “stamp” whisky bottles to prove that duty had been paid would be prohibitively expensive and would cost jobs.
There was also little positive reaction to the Chancellor’s pledge to freeze the level of duty on whisky until the end of this parliament – which could be as early as 2005.
Alex Salmond, the Scottish National Party leader at Westminster, said: “On whisky, the strip stamps that the Chancellor announced would mean that the industry faced an annual bill of up to £280 million – more than a tenth of yearly sales – which would lead to job losses.”
Angus Robertson, SNP MP for Moray, one of Scotland’s major whisky producing areas, said the new measures could lead to closure of some of the smaller distilleries.
He said: “Any initial outlay for companies to buy the necessary application machinery will run into millions of pounds. The stamps would also have to be paid up front, presenting a cash-flow nightmare for all concerned. The cost to the industry could drive some small producers out of business.”
Mr Robertson said the “daft and expensive” scheme was blocked by cross-party opposition and the Scotch Whisky Association (SWA)two years ago.
Instead,the SNP called for a cut in duty on whisky – which it claims damages the industry and is the underlying reason for illegal sales.
Mr Robertson added: “Sadly the London government continues to treat this key Scottish employer as a cash cow and is not even prepared to cut duty and end taxation discrimination.”
Gavin Hewitt, the chief executive of the SWA said alcohol fraud must be stopped, but claimed that there were better ways to deal with the problem than the proposed tax stamps.
The SWA also claimed the proposed strip stamps, which will be stuck on bottle tops or necks, do not stop fraud in other countries and can be forged.
Mr Hewitt said:“We will be working hard to convince the Treasury that tax stamps would be a backward step, damaging productivity and competitiveness and that alternative, more risk-based measures would be more effective.”
However, there was some good news for the Scottish Executive yesterday – its annual budget will increase by £47 million as a result of the proposals announced by Mr Brown.
The vast majority of that sum is due to the massive amount that the Chancellor earmarked to help ease the council tax crisis in England, where bills have soared as local authorities struggle to balance their books.
Jack McConnell, the First Minister, faces no such constrictions about what to do with the money due to be released when Mr Brown translates his pre-Budget report into the Budget next year. Local authorities in Scotland have their budgets set on a three-yearly basis under a deal which was brokered by Mr McConnell when he was the finance minister.
Mr Brown also announced that new companies entering the North Sea will receive enhanced tax relief on their oil exploration costs. But the industry said this was of marginal benefit, falling well short of its requests.
More positively, small firms with a turnover of up to £22 million will benefit from 40 per cent capital allowances – a higher threshold. Articles Courtesy of The Scotsman
Distillers fear Brown will raise taxes on spirits WHISKY distillers, fresh from their spat over the Cardhu affair, are bracing themselves for the possibility of the first increase in excise duties on spirits since Labour returned to power.
Some economists are speculating that Gordon Brown, the Chancellor, will be forced to increase the cost of beer, spirits and cigarettes as part of his attempt to close an estimated £10bn gap in the public finances.
In his pre-budget report on Wednesday, Brown is expected to announce that Britain is on track to meet his economic growth forecasts this year, downplaying the black hole.
But sceptics say he still has to cut spending or raise taxes to balance the books and could raise indirect taxes in next year’s budget. He has not increased duty on whisky since he moved into office in 1997. Distillers and brewers will watch closely on Wednesday for any hints.
Peter Spencer, chief economic adviser to Ernst & Young’s Item Club, said whisky distillers should be prepared for a rise at some stage. "He is scratching around for revenue. Whisky has been let off for so many years. Spirits are cheap compared with anything else," he said.
The whisky industry will switch attention to fighting its corner on tax after settling its row with Diageo. Industry sources told Scotland on Sunday that the spirits company was allowed to save face in last week’s agreement over Cardhu ‘pure malt’ whisky.
There was talk of a ‘deal within a deal’ before the official meeting of the Scotch Whisky Association on Thursday to ensure Diageo was not humiliated and was seen to be complying with a consensus view. It was announced that an industry-wide agreement had been reached to protect the integrity of malts by clarifying Scotch whisky categories.
But Tony Hunt, deputy group managing director of William Grant & Sons, later added distillers would do everything they could to comply with the rules, "retrospectively and going forward". One industry source said it meant last Thursday’s agreement could be reviewed, which might reopen the arguments. Articles Courtesy of The Scotsman
Exporters hit by new US bio-terror rules COMPANIES exporting food and drink to the US will be forced to disclose sensitive commercial information or be stopped from exporting entirely under anti-terrorism rules due to come into effect this week.
The US bio-terrorism act - designed to protect against poison attacks - could lead to tonnes of Scottish produce being impounded or destroyed. Scotland exports about £320m worth of produce to the US every year, supporting an estimated 5,500 jobs.
One company contacted by Scotland on Sunday said the volume of paperwork involved had led it to stop exporting to the US. Others were unaware of the new rules.
Under the act, food and drink producers must register their manufacturing sites and fill in an online form for every item of produce sent to the US from Saturday. The US Food and Drug Administration will issue a number, allowing the product to get through customs. Produce which does not carry a number or has been wrongly labelled could be destroyed.
‘For a specialist food retailer the paperwork is just a non-starter’
The new rules are designed to protect US citizens from poison attacks, but some food and drink producers believe it will create unnecessary red tape and could be damaging. A spokesman for the Scotch Whisky Association said: "We recognise the objectives, but the European alcoholic beverage industry has expressed reservations about how appropriate and proportionate the regulations are."
The SWA is worried producers may have to reveal secrets about each individual spirit that goes into blended whiskies and vatted malts. The US is the world’s biggest market for Scotch whisky. Distillers are also concerned that the ‘prior notification’ rules will overlap with existing customs forms to create unnecessary paperwork.
Although the legislation comes into force this week, whisky producers have until next spring to argue against full disclosure.
Scottish food exports to the US are worth around £20m per year, supporting roughly 500 jobs. Philip Contini, the managing director of Valvona & Crolla, the Edinburgh delicatessen, said the new rules had forced him to give up exporting to the US. He said: "We are just staying away from that completely. For a specialist food retailer the paperwork is just a non-starter."
Despite the hard line taken by the US, a number of food exporters were not aware of the new legislation. Jane Twelves, whose South Uist-based company, Salar, exports smoked salmon to the US by post, said she had not been informed.
The rules could create a glut of produce in Europe, reducing the amount farmers and food manufacturers can charge for their products. Scottish Enterprise said it was aware of the legislation but had not sent information to all Scotland’s food exporters. Around 20 companies attended an SE event in September which focused on US bio-terrorism regulations.
Wine merchants in the US have complained that the new rules mean it will be harder for them to import foreign products. The Royal Mail last week said it would not accept manufactured food or drink destined for the US without an FDA notification number from December 13.
The FDA said online export applications should take around 15 minutes per item. Articles Courtesy of The Scotsman
Whisky sour as deal leaves a nippy taste AN UNEASY calm has settled over the whisky industry. Yesterday, it was announced that an agreement had been reached in the dispute over Cardhu "pure malt".
Just hours earlier, a militant faction looked likely to force resignations from the Scotch Whisky Association (SWA). But the critics were placated and Diageo, owner of the Cardhu brand, had compromised. The executive of the SWA brokered a deal and a schism was avoided... Click here for full story Articles Courtesy of The Scotsman
Whisky row showdown TRADITION dictates that when the council of the Scotch Whisky Association dines on the eve of a meeting, a topic is chosen for discussion that is of relevant concern to the industry. As the SWA gathered in the Long Room of Edinburgh’s New Club last night, they talked about the retirement of Hugh Morison, its long-standing chief executive.
This morning, the 16-member council, including the chief executives of Diageo, Allied Domecq, Edrington Group and Glenmorangie, will get down to the real issue - resolving the issue of Diageo’s decision to label a blend of malt whiskies from five different Speyside distilleries as Cardhu Pure Malt.
It is a meeting analysts have billed as the most important the whisky industry has faced in a quarter of a century. It could also determine the future of the SWA, with some industry sources suggesting it could pursue legal action against Diageo in London and Europe.
The Scotsman has learned that the SWA will tell the industry that it should seek a compromise with Diageo, put the affair behind them and move forward. Diageo will come to the table with proposals it hopes will placate the industry - including a plan to change the colour of the label and cartons of Cardhu pure malt from brown to green and a pledge to carry out a strategic review of the brand early next year, maybe involving changing the shape of the bottle.
Diageo will pledge to undertake a major advertising campaign in Spain, explaining the changes to the consumer and will promise not to introduce Cardhu Pure Malt into the UK market for 12 months.
They will apologise to the industry but insist they are right in principle and will not withdraw the product.
Last night, one industry analyst said it could go one of three ways. He said: "The best scenario would be that the SWA reach an agreement with Diageo to withdraw the product. Failing that, the SWA could reach a deal where Diageo keep the product but promise a redesign of the bottle and the package. Thirdly there could be a situation where Diageo do not budge, a schism emerges and a few militant distillers pursue the course of legal action outside of the SWA."
One of the problems facing Gavin Hewitt, new chief executive of the SWA, when he sits round the table in Edinburgh today is that a handful of distillers are adamant that the only solution is for Diageo to withdraw the product. Others are willing to put the issue behind them.
Last night, a senior industry source, who has not spoken on this issue to the press until now, said he thought Diageo’s proposals didn’t go far enough and today’s meeting will be critical for the future of the SWA.
He said: "If we do not get an agreement and there is a schism in the industry, this could be the end of the SWA. There is a real concern that senior politicians will turn around and say that the whisky industry is supposed to be self-regulating and that we have to get our house in order."
Another insider said: "From a commercial standpoint, I sympathise with Diageo. This maybe is the wrong decision, but although Jonathan Driver may have made a mistake with Cardhu he has done a lot of good for malt whisky."
The SWA emphasised that there will be an extensive agenda, alongside discussions aimed at reaching a solution on Cardhu that is in the best interests of the whole industry.
A spokesperson said: "The meeting will also discuss next week’s Pre-Budget report, how best to tackle trade barriers abroad, the 2004 Budget, as well as a range of other important issues facing distillers." Articles Courtesy of The Scotsman
Malt-row distillers threaten EU action INDEPENDENT distillers across Scotland are considering legal action in both Britain and Europe against industry giant Diageo in a dramatic escalation of the Cardhu malt whisky row.
The Scotsman has learned that a City law firm has advised a number of distillers that independent single-malt whisky producers may be able to take action against Diageo through a complaint to the European Union competition authorities in Brussels or to a national competition regulator such as the Office of Fair Trading in the UK.
The Scotsman has also learned that the Scottish Whisky Association (SWA) made it clear to Diageo that more concessions will be needed if they are to reach a compromise at a planned meeting on Thursday.
However, industry sources last night warned that a protracted legal battle could result in a schism within the Scotch whisky sector, which could harm the business in the long term. Diageo has angered the Scotch industry with its decision to sell Cardhu pure malt in the same style of bottle as the single malt and with the name of the Speyside single-malt distillery on the label. Distillers claim the decision could damage the industry and confuse drinkers into thinking Cardhu was still a single malt, rather than a blend.
The city law firm Norton Rose argues that Diageo represents a real threat to smaller, independent single-malt Scotch whisky producers and that in the long term this must be against the interests of consumers.
The legal advice, commissioned by some of Scotland’s leading distillers, says: "Diageo own more distilleries in Scotland than anyone else. Therefore, they are always likely to have a surplus of stock in several of them, which they can fill in the Cardhu bottle, even if they have no actual Cardhu single malt.
"This is a major economic advantage over smaller companies who are fighting to maintain the authenticity of the single malt category. The entire Scotch whisky industry is unanimous in its opposition to the move that Diageo has made, which is seen as being a threat to the global reputation of Scotch."
Last night, one industry source described the possibility of a legal move as "crazy". He said: "If lawyers get involved, positions get entrenched and a solution is harder to find. The threat of legal action could jeopardise a deal."
Diageo has made several concessions, including a pledge not to introduce Cardhu pure malt in any further markets until substantial changes to the packaging are introduced next spring.
A spokesman for the SWA said: "We are working to achieve a resolution at the meeting on Thursday and will be looking at a number of solutions."
Diageo refused to comment on the threat of legal action last night, saying it was "fed up" with leaks in the press and the proper forum for debate was through the SWA on Thursday.
The news comes just days after it emerged that the EC is set to investigate Diageo’s decision to turn its Cardhu single malt into a blend of five malts. Articles Courtesy of The Scotsman
Whisky's reputation 'under threat' A decision by drinks giant Diageo to change the composition of the famous Cardhu malt has caused waves of protest around the world.
Diageo's global brand director told BBC Scotland News Online that the implications of the move had been distorted and over-dramatised.
However, rival whisky maker William Grant & Sons, whose products include Glenfiddich and The Balvenie, claims the industry's reputation is being damaged.
Its deputy group managing director tells us why... Click here for full story Articles Courtesy of The Scotsman
European probe launched into Diageo dispute THE row engulfing the Scotch whisky industry has intensified even further, after it emerged that the European Commission is set to investigate Diageo’s decision to turn its Cardhu single malt into a blend of five different malts.
The EC will examine the matter after receiving a letter of objection to Diageo’s move from European Parliament president Pat Cox.
It will investigate whether Diageo’s decision to alter its Cardhu product without making noticeable changes to the whisky’s packaging constitutes an infringement of internal market or consumer protection regulations... Click here for full story Articles Courtesy of The Scotsman
Tourist drive brings malt out of mothballs WHISKY from a distillery once mothballed will go on sale later this year as part of a plan to create a new tourist attraction in rural Perthshire.
A few thousand cases of Tullibardine whisky will be placed on the market over the next few months following a label and carton redesign by Wolffe & Co, the Edinburgh consultancy.
Tullibardine distillery, near Gleneagles, was sold by the drinks group Whyte & Mackay to a Scottish consortium earlier this year. Jim Beam Brands, Whyte & Mackay’s predecessor, stopped production at the site in 1994.
Doug Ross, one of Tullibardine’s directors, said sales of spirit distilled in 1993 would increase gradually over the next 10 years. It will be priced as a mid-market malt at around £23 a bottle.
Ross said: "Rather than have to find distributors, we plan to sell it through upmarket outlets such as quality hotels."
£10m visitor centre will provide distillery tours, shops and a restaurant
The new-look bottle should be in a limited number of shops and bars by Christmas. Michael Beamish, another director, said the previous packaging had looked "generic" and that the new label conveyed more individuality. Whisky made this year has to be aged for 10 years and so will not be available until 2013.
The company plans to produce about 100,000 litres a year, putting it on a level with smaller distilleries such as Edradour, which is also in Perthshire.
Customers will be able to pay up front for individual casks containing the equivalent of about 360 bottles.
Ross estimated a few hundred casks would be sold, generating about £160,000.
He said: "We have not been forced into doing this to survive. It is to meet demand from the public and aficionados. If you view [buying a cask] as an investment, it might not make sense, but people like the idea."
In the meantime, Tullibardine plans to generate cash by building a £10m tourism attraction and retail centre at the site, which is close to the busy A9 Stirling-to-Perth road.
The 50,000sq ft centre will provide distillery tours and a related exhibition, as well as a restaurant and retail centre including a Baxters food shop.
It aims to attract 250,000 customers a year. Plans are in the process of being drawn up by 442 Design, the Edinburgh agency.
Tullibardine is one of a number of small distilleries which have been reopened or built from scratch over the past 10 years, including Ladybank in Fife and Blackwood in Shetland.
The company is part of the industry majority which has criticised drinks group Diageo’s plan to sell a mixture of malt whiskies under the Cardhu brand name. Articles Courtesy of The Scotsman
Whiskies galore The story of how an old neglected Islay distillery was rescued and revived by a team of young private investors a couple of years ago is now familiar to whisky lovers. The new owners of Bruichladdich on the shores of Loch Indaal now call themselves the free spirits and "enfant terribles" of the whisky world. I’d call them today’s heroes; a high-spirited team of Davids fighting against a world of corporate Goliaths. The latest rash of "Laddie" bottlings are some of the best on the malt shelf today - ideal for celebrating St Andrew’s Day tomorrow... Click here for full story Articles Courtesy of The Scotsman
Pure malt row sees Diageo frozen out WHEN Diageo sits down next week with members of the Scotch Whisky Association (SWA) to defend its decision to brand Cardhu as a "pure" rather than "single" malt, it will find itself completely isolated.
The Scotsman has learned that the executive of the SWA has told Diageo that it feels the only solution to the present crisis is for the world’s biggest drinks company to withdraw its controversial Cardhu Pure Malt product.
The Scotch whisky industry has been angered by Diageo’s decision to sell the whisky in the same style of bottle and with the name of its Speyside distillery on the label. Distillers claim the decision could damage the industry and confuse drinkers into thinking Cardhu was still a single malt, rather than a blend... Click here for full story Articles Courtesy of The Scotsman
Whisky market The whisky industry spends around £90 million a year with Scottish cereal suppliers, and uses about half of all the cereals grown in Scotland. The suggestion by ET Baxter (Letters, 22 November) that distillers have "halved the price they pay" for barley ignores the reality of movements in world prices, and the fact that growers’ contracts are generally with malting companies, not distillers.
The suggestion that a higher price paid by distillers for barley would cost the industry just a few pence a bottle ignores the highly competitive nature of the international drinks market in which whisky operates, and the fact that the majority of the retail price is tax, not money going to distillers.
Many distillers already buy all their barley from Scottish sources, and often do so while paying a premium to ensure continuity of supply under branded contracts. But, given the vagaries of the weather it is unrealistic to suggest that all barley used by the industry must be grown in Scotland.
The brandy industry’s reliance on French grapes in the late 1800s led to its demise when the crop failed, allowing whisky to flourish and become the global industry it is today.
No-one with the best interests of Scotland’s economy at heart will place the future of Scotland’s leading indigenous industry at the mercy of the Scottish climate.
CAMPBELL EVANS
Scotch Whisky Association
Atholl Crescent
Edinburgh Article Courtesy of The Scotsman
Right spirit of self-censorship ALLIED Domecq, the drinks company, has appointed advisers to vet its ads for those which may link alcohol with sexual success, or... irresponsible drinking.
The company, which owns brands including Ballantine’s whisky and Harveys Bristol Cream, is believed to be taking the unusual step to convince public health officials that the drinks industry does not need external regulation. Wishing to prove how responsible it is, Allied has even withdrawn an ad - which has never been shown - for Wet By Beefeater, a cocktail version of Beefeater gin.
It showed a man and a woman at a piano with the slogan: "When he looked at her like that she knew she would get wet."
What’s the world coming to? Article Courtesy of The Scotsman
No barley will mean no whisky industry Until responsibility for the whisky industry is transferred to Edinburgh, the Cardhu saga will remain a mar-ginal interest for London politicians.
The rural development minister, Ross Finnie, is "consulting" on the future of Scottish agriculture, but while Diageo is able to treat malt whisky as a commodity and source the raw ingredients for it from anywhere in the world, the future of Scottish agriculture is not in our hands.
The few multinationals which own our distilling industry have halved the price they pay for low nitrogen malting barley in the last seven years. Prices are now below the cost of production, so without subsidy there would be no malting barley grown in Scotland.
To pay farmers a price which did give them a return would cost only pence per bottle. It, therefore, comes as no surprise that an industry which treats its supply base with such disdain is as cavalier with the reputation of its final product.
The organisation, Linking Environment and Farming, of which I am chairman, promotes integrated farm management, a discipline for farmers which shows the way. However, without a realistic price from the distillers for our malting barley there will be no future for Scottish agriculture.
In time, Scotland will have no whisky industry either; no barley grown in Scotland means it will be cheaper to make whisky elsewhere.
ET BAXTER
Gilston
nr Leven, Fife Article Courtesy of The Scotsman
£7,500 bid offer for trip to Macallan A Listener to one of radio's most popular breakfast shows has paid £7,500 for an exclusive trip to the Macallan Distillery on Speyside.
William Jones made the highest offer after an hour's frenzied bidding during the BBC's Children In Need auction on yesterday's Wake Up With Wogan programme.
It will see Mr Jones, from the Isle of Man, flown north along with a friend and treated to a VIP tour of the distillery near Craigellachie.
They will be given access to the Macallan's unique £14.5million Fine and Rare range of vintage malt whiskies which is normally kept well under lock and key. The most expensive bottle in the range is worth £20,000.
Mr Jones and his guest will stay at the Craigellachie Hotel and they will be served lunch or dinner in the dining-room at Easter Elchies House, the distillery's spiritual home overlooking the River Spey.
They will also be given a tutored nosing and tasting by Bob Dalgarno, the Macallan's whisky maker. Carol McLaren, of the Macallan team which arranged the auction prize, said staff at the distillery were delighted with the amount the Macallan trip had raised for Children In Need. "The distillery team pride themselves in the warm welcome they give all our visitors to ensure that each and every guest enjoys the uniquely exclusive atmosphere at the Macallan," she said.
"But the winners of today's auction prize can be sure that absolutely all the stops will be pulled out for their visit.
"They will enjoy the truly unforgettable malt whisky experience of a lifetime." Article Courtesy of The Press & Journal
Glenmorangie sees malt sales rise 10% GLENMORANGIE continued its march on the growing malt whisky market yesterday after reporting an 8 per cent increase in half-year profits on the back of growth of 10 per cent in its flagship brand.
Chief executive Paul Neep said the group continues to make good progress against all strategic objectives and emphasised that developing and building premium brands for the long term remains the firm’s key objective.
Focusing on the Far East, Neep said that in real terms the percentage of Glenmorangie’s business in Asia was relatively small, but he was looking to grow that in the next decade.
Neep said: "There are some interesting markets for malt in the Far East, particularly in Korea and Taiwan, and we are looking at their potential."
The company said shipments of its Glenmorangie malts rose 10 per cent, while its Glen Moray brand was ahead 8 per cent, spurred by the "Glen of Tranquility" advertising campaign that will continue over Christmas.
Overseas sales were strongest in the US with Glenmorangie outperforming rivals, while sales in Canada doubled.
The alliance with Bacardi-Martini brought instant rewards in the UK with its marketing strengths enabling Glenmorangie to capture market share from competitors.
It also gave it a distribution platform in Germany, Spain, the Netherlands, Austria and Switzerland.
The company began bottling the new cream spirit brand Drambuie Sylk in July and this has been introduced to the US market. Neep said the tie-in with Drambuie was a "win-win" for both parties, but he ruled out the possibility of a takeover.
"It is a private company, it is not for sale and we have never shown an interest in buying it."
Neep added that an expansion at its Glenmorangie distillery had lifted output, while its Ardbeg distillery on Islay is currently operating at more than 90 per cent capacity. Glenmorangie has three distilleries, in Tain, Elgin and Islay, and employs 295 full-time staff.
The Ardbeg brand has entered the top ten malts in the off-trade sector, but Neep warned that heady sales growth of 20-30 per cent would soon slow due to limited stocks inherited in 1997 with the distillery, which was mothballed during the 1980s.
He also cautioned that a sustained recovery of world economies continued to be uncertain, and he anticipated the medium term environment towards higher UK interest rates could affect consumer spending in the home market.
Drinks analyst Fulton Patterson at Seymour Pierce said that there was great potential in the next few years as the benefits of the Brown-Forman and Bacardi tie-ups was just starting to come through.
Patterson said: "I think they are a well-managed business now, the new guys in charge are showing their mettle.
"Christmas is absolutely vital for them of course. They are now number one in the UK having overtaken Glenfiddich, gearing has come down again.
"The Far East is starting to move quite nicely, all these things are quite promising. I think they will carry on growing and go from strength to strength."
The dividend was increased by 7 per cent to 4.5p per A ordinary share (which carry limited voting rights) and 2.25p per B ordinary share, reflecting continued confidence in the groups prospects. Article Courtesy of The Scotsman
Distillers meet to talk over diageo issue The Scotch whisky industry has backed down on threats to sue drinks giant Diageo for labelling Cardhu a "pure malt" after changing the contents.
But senior directors of the major distillers still plan to pursue the matter with the Scotch Whisky Association (SWA).
About 60 distillers met in Glasgow yesterday to discuss what action they should take against Diageo for changing Cardhu from a single malt to a blend of malts from different distilleries.
It is understood the vast majority of single-malt distillers were represented, including Allied Domecq, Chivas Brothers, William Grant & Sons, Morrison Bowmore and John Dewar and Sons.
Diageo, which owns such brands as Guinness, Smirnoff and Baileys, changed the recipe of Cardhu because of a shortage of single-malt whisky to supply the profitable Spanish market.
The industry believes changing the wording on the label from "single malt" to "pure malt" will confuse customers and undermine the prestigious and profitable single-malt market.
Senior directors from the main whisky companies wrote to Diageo and the SWA yesterday about the marketing of Cardhu.
Their message was that the industry cannot compromise on the protection of single-malt whisky and Diageo should reconsider using the name Cardhu - which has been a single malt for 30 years - for a mixture of malt whiskies.
A spokesman for the group said: "We are confident that sense will prevail."
Diageo's president for Europe, Ian Meakins, said he was pleased the other companies had agreed to pursue the matter with the SWA.
"As previously stated, we have at all times sought to resolve the issue with the rest of the industry through the SWA," he said.
"'We remain committed to the long-term future of the SWA as the best forum for continuing this debate and seeking to develop a common and coherent voice for Scotch whisky.
"Diageo's commitment to Scotch whisky is absolute. We want the Scotch whisky category to grow and expand. We recognise that innovating in an industry renowned for tradition over modernity has provoked animated discussion."
SNP MEP Ian Hudghton has stepped into the fray on the side of the disgruntled distillers.
He has approached the European Commission to see if the term single malt could be recognised and protected under the EU's Agriculture Quality Policy. Article Courtesy of The Press & Journal
Distillers single-minded over malt THE Scotch whisky industry last night united against Diageo over its decision to relaunch Cardhu as a "pure malt".
At a crunch meeting behind closed doors at the Glasgow offices of Morrison Bowmore, senior executives from all of the major distillers rallied behind the industry’s representative body, the Scotch Whisky Association (SWA) , saying it still had a "significant role to play" in the resolution of the issue.
It is understood that, after a "gentlemen’s agreement", it was decided that a statement will not be issued until Glenmorangie reports its interim results to the City at 8 am today.
But last night a source close to the meeting said it had resulted in a unanimous condemnation of Diageo’s actions. He said: "The industry is very concerned about the Diageo move and we will be working with the Scotch Whisky Association to resolve the issue."
It is believed the vast majority of single malt distillers were present at the meeting, including executives from Allied Domecq, Chivas Brothers, William Grant’s and John Dewar and Sons.
Diageo’s move to change the Cardhu bottle’s contents from a single malt to a vatted malt from five distilleries without changing its name has caused outrage in the industry.
On Thursday, a meeting between Diageo managers and Scottish MPs to try to resolve the dispute ended inconclusively.
Diageo insists it will not back down, claiming the change at Cardhu will boost the £20-a-bottle whisky's profile.
All eyes now turn to the SWA’s next meeting on 4 December where industry leaders will meet Diageo to try to reach a compromise.
Last night, Diageo said that, ultimately, the issue had to be resolved by the SWA.
After reaching the floor of the House of Commons last week, it was the European parliament’s turn to discuss the issue when the SNP MEP, Professor Neil MacCormick, asked the president of the European parliament to write to Diageo’s chief executive.
Speaking in the opening session of the parliament’s plenary session in Strasbourg, Prof MacCormick said that brand owners should not mislead the public by abuse of a well-known name.
Prof MacCormick said: "Just as we should be concerned when counterfeiters abuse rightholders, so we should be alert when rightholders abuse consumer confidence.
"Diageo, the global spirits producer, has lately done this very thing. It is not the single product of a single distillery. Consumers are being misled, and the good name of Scotch whisky is being put at risk."
Last week Angus Robertson, the Scottish National Party MP, called on the Prime Minister to support cross-party efforts to force Diageo into a U-turn. He told the House of Commons that Diageo was "undermining the standing of this important industry".
A wary Tony Blair told the Commons: "I will look into this issue. I am not entirely sure this is a matter for government. At least, I sincerely hope it’s not a matter for government." Articles Courtesy of The Scotsman
Fiddlers' whisky gig in Frankfurt It's a long way to go for a Saturday night gig, but the 14 teenage fiddlers flying to Frankfurt this weekend to play at a European whisky festival are not complaining.
Moray musical group Strathspey Fiddlers have been invited to perform at mainland Europe's biggest whisky festival.
A combination trade fair and festival of whisky culture, InterWhisky 2003 features three days of talks and tastings of whiskies from Scotland, Ireland, Canada and in the USA.
Whisky is big business in Germany, with German retail stores selling approximately 12million bottles of Scotch whisky last year, and about 300 people are expected to attend the weekend festival.
The event will culminate in a Scottish dinner in the Inter-Continental Hotel, with entertainment provided by the Strathspey Fiddlers.
The performance will not be limited to fiddling, according to group leader Donald Barr. The teenagers from Huntly, Keith and Buckie will also provide piping, dancing and singing.
He said: "Performing for 300 people from all over Europe is going to be great fun." The fiddlers will leave Scotland early on Saturday morning and return the next day.
During their brief visit, the group will be treated in style, staying overnight at the five-star hotel where the dinner is taking place.
Several area distilleries will be represented at the festival, including Glenfiddich, Glenlivet, Glenrothes and Strathisla. Article Courtesy of The Press & Journal
Water of life's secrets sold off IT HAS been Scotland’s number one indigenous export since Friar John Cor first appeared in the Exchequer Rolls with eight bolls of malt in 1494. But now the £2 billion whisky industry is not only exporting the water of life but also the means and materials to make it... Click here for full story Articles Courtesy of The Scotsman
Diageo chief's £50,000 shares windfall DIAGEO, the drinks giant, launched an offensive yesterday to rebuff accusations that it was forced to blend its single malt brand Cardhu because it had misjudged stock levels.
In an interview with The Scotsman, Jonathan Driver, the company’s global malt whisky director, said it was a strategic move aimed at building on the success Cardhu had enjoyed in Spain.
Mr Driver said: "We are not short of Cardhu, but we have reached capacity. The issue here, and the vocabulary is very important, is strategic. Shortage is not the issue. I repeat, we are not short of Cardhu."
However, the issue has put the world’s largest drinks group at odds with the rest of the whisky industry.
Yesterday, the row took another turn when an SNP MP, Angus Robertson, warned Tony Blair that Diageo’s decision to change a brand of single malt to a blend risked "undermining the standing" of the industry.
Mr Blair said he was not sure it was a matter for government, adding: "At least I sincerely hope that it’s not a matter for government."
Critics were angered when the company announced plans to sell the whisky in the same style of bottle and with the name of its Speyside distillery on the label.
They claimed the decision could both damage the industry and confuse drinkers into thinking Cardhu was still a single malt, rather than a blend. Article Courtesy of The Scotsman
Distiller's sales jump WHYTE & Mackay, the privately-owned whisky distiller formerly known as Kyndal, has reaped the benefits of a push into England and Wales following a jump in sales for the four months to the end of August.
The company sold 20,000 cases south of the Border - worth a total of £2.4 million - during the period compared with just 3500 cases, for £447,000, last year.
Whyte & Mackay said a distribution deal with the UK’s top five supermarkets had fuelled the rise. Articles Courtesy of The Scotsman
McConnell and MPs intervene in industry rift over single malt It followed a second meeting between the all-party Commons scotch whisky group and Diageo directors in an attempt to heal a serious rift in the industry between those anxious to preserve the integrity of "single" malt brands and the decision of Diageo to replace its former single malt Cardhu with a blend of malts, calling it "pure malt"... Click here for full story Article Courtesy of ThePress & Journal
Domecq chiefs gain 38% bonus increases ALLIED DOMECQ, the wines and spirits group, increased the performancerelated bonuses of three of its top executives by more than 38 per cent in its past financial year, even though the company’s share price fell by 7 per cent during the same period.
The world’s second biggest drinks company paid Philip Bowman, chief executive, a performance-related bonus of £1.04 million for the year to August 31, a 40 per cent rise on the year before. Graham Hetherington, chief financial officer, received a £507,000 bonus, up from £366,000 last time. Meanwhile, David Scotland, president of the wine division, received a 63 per cent increase in his bonus, bringing it to £542,000 for the year.
The company defended the bonuses, saying they were “commensurate with the much more demanding economic conditions in many of the relevant markets”.
In October the maker of Ballantine Scotch whisky and Beefeater gin reported a 3 per cent rise in full-year pre-tax profits to £480 million. The company said it was the worst market since 1999, as the war in Iraq and the outbreak of severe acute respiratory syndrome (Sars) hit demand.
A company spokesman said: “It’s true that our headline earnings per share figure rose by only 3 per cent — but we were hit by the decline in the value of the dollar and an increase in pension payments. When these exceptional items are stripped away we increased underlying profits by 20 per cent.”. Article Courtesy of The Times
Distiller defends Cardhu blend DIAGEO, the drinks giant, launched an offensive yesterday to rebuff accusations that it was forced to blend its single malt brand Cardhu because it had misjudged stock levels.
In an interview with The Scotsman, Jonathan Driver, the company’s global malt whisky director, said it was a strategic move aimed at building on the success Cardhu had enjoyed in Spain.
Mr Driver said: "We are not short of Cardhu, but we have reached capacity. The issue here, and the vocabulary is very important, is strategic. Shortage is not the issue. I repeat, we are not short of Cardhu."
However, the issue has put the world’s largest drinks group at odds with the rest of the whisky industry.
Yesterday, the row took another turn when an SNP MP, Angus Robertson, warned Tony Blair that Diageo’s decision to change a brand of single malt to a blend risked "undermining the standing" of the industry.
Mr Blair said he was not sure it was a matter for government, adding: "At least I sincerely hope that it’s not a matter for government."
Critics were angered when the company announced plans to sell the whisky in the same style of bottle and with the name of its Speyside distillery on the label.
They claimed the decision could both damage the industry and confuse drinkers into thinking Cardhu was still a single malt, rather than a blend. Article Courtesy of The Scotsman
Rebirth of one of Scotland's oldest whiskies TULLIBARDINE, one of Scotland’s oldest distilleries, will re-open for business at the end of the month almost ten years after it was closed down.
The distillery, in Blackford just south of Gleneagles in Perthshire, will distill a limited production of Tullibardine Single Malt.
Doug Ross, a director of Tullibardine, the consortium which bought the site for £10 million in June, described the reopening as the culmination of a long-term dream.
Mr Ross said: "We have spent a significant sum in restoring the distillery. When we acquired it from Whyte and Mackay in the summer it was in a state that had been sympathetically de-commissioned. All the kit was in good condition but since then we have fitted and upgraded the pumps, valves, pipes and made them more efficient."
Described by Michael Jackson, author of the Malt Whisky Companion, as "eminently quaffable", the whisky has a soft, sweetish, lemony style with a vanilla like spiciness.
Customers will be offered the chance to buy a personalised cask which will be kept in a warehouse for a period of ten years. The casks, on the market at £800, can be labelled, bottled and distributed to the owner’s specifications.
The original distillery dates back to the late 1790s. Home to Highland Spring, Blackford also boasts the site of one the oldest breweries in the UK, dating back to 1488 when it produced a special ale for the coronation of King James IV at Scone.
In the 1970s, Tullibardine was taken over by Invergordon before being mothballed in 1994.
David Williamson, of the Scotch Whisky Association, said: "There has been an encouraging trend of whisky distilleries being reopened and redeveloped and this is good news for the industry." Article Courtesy of The Scotsman
Whisky galore not for Iain IAIN Banks’s latest oeuvre, Raw Spirit is primarily about whisky but also "an idiosyncratic journal which is part travel book".
The publishers insisted that Banks, "a bit of a petrol head", should drive round the distilleries. But isn’t it funny how whenever publishers commission a Scottish writer to do a book on whisky, they make sure they do it on wheels? Obviously, they do not trust them otherwise to stay sober. Our old mucker on the Diary, Tom Morton, had to do his on a motorbike with sidecar.
Meantime, Banks usually enjoys a dram at his local, the Albert Hotel in North Queensferry, where he was featured in the foodie section of a Sunday magazine this weekend. The Albert’s hostess, Rhona Campbell, was saying, though, that he is not the only famous customer: "Gordon Brown has a house in the village, so he pops in for drinks. Tony Blair used to come with Mr Brown, but he hasn’t been in since Labour has been in power."
Now, there’s a surprise. But where better to build bridges than on the Forth? The Albert can replace Granita - or even Montpeliers - as the scene of Labour’s new deal. Articles Courtesy of The Scotsman
Distillers in singular threat to Diageo dram A Row at the heart of the whisky industry is threatening to spill over into the courts.
It comes after industry giant Diageo provoked anger among rival distillers by attempting to pass off a blend of whiskies as a prestigious single malt.
Now a group of distillers have come together to explore the possibility of legal action against Diageo. They say the move could clearly establish a legally binding definition of single malt and benefit the industry.
Representatives from about 60 brands are due to meet in Glasgow a week tomorrow. A civil action of consumer deception against Diageo has already been mooted.
The row flared up after Diageo changed the recipe of one of Speyside's most popular malts, Cardhu. Instead of being a traditional single 12-year-old malt, it is now being made from vatted malt from several distilleries, although it is still being sold as Cardhu.
The only change Diageo has made to the label is to substitute the word "single" with "pure".
Rivals claim that the move will mislead customers and could seriously damage the worldwide reputation of the Scotch whisky industry.
Diageo, which accounts for about half of Scotland's whisky distilling, said it announced changes to Cardhu in July after stocks of the single malt ran low and led to fears they may not be able to meet increasing demand. It is mainly marketing the "pure" malt in Spain at the moment, then will move into Portugal, France, Italy and Greece. It should be available in the UK in about a year.
Diageo says it has carried out publicity, advertising, tasting and consumer education, particularly in Spain to ensure consumers are aware of the change.
Scottish Whisky Association spokesman David Williamson said: "The Scottish Whisky Association is very much involved in discussions about changes to protect and allay the concerns expressed by some member companies.
"We will have discussions with Diageo about the matter to find a way ahead in the best interests of the whole industry."
John Grant, managing director of J & G Grant of Speyside, which makes Glenfarclas, said: "They are misleading the public by selling Cardhu in the same bottle, with the same packaging it has had for years, when what's in the bottle is not Cardhu.
"In my opinion, it sets a dangerous precedent." Article Courtesy of ThePress & Journal
Diageo hits back in whisky wars DIAGEO, the Scotch whisky producer at the centre of an increasingly bitter row over a new, vatted version of its 12-year old Cardhu malt, has hit back at claims that its controversial changes will harm the industry and predicted others would follow in order to grow their exports.
Jonathan Driver, Diageo’s global malt whisky director, last night defended his decision to turn Cardhu single malt into a pure malt - a mixture of five whiskies from various Speyside distilleries - to keep up with demand.
He said rival distillers should welcome his innovation as a way of staving off competition from other spirits categories such as vodka and rum.
He told Scotland on Sunday: "If this is successful, others will follow. That doesn’t mean the end of single malts - it means it is a better and bigger malts category at the end of it all. I genuinely believe innovation is required to take the malt whisky business to the next level."
Diageo is already distributing the Cardhu pure malt in Spain, France, Portugal and Greece after runaway success grew sales by 200,000 cases in little over a decade.
It is also testing the concept in the US, despite the new product isolating Diageo from the rest of the Scotch whisky industry at home. Others are concerned the move will tarnish the reputation of the industry, which had exports worth £2.28bn last year.
But Driver’s comments were described last night as "wishful thinking" by Tony Hunt, deputy managing director of William Grant & Sons, which is leading the opposition.
Hunt accused Diageo of capitalising on the ignorance of Spanish consumers - the biggest drinkers of Cardhu. "The reason why single malt as a category has become the jewel in the crown as far as the Scotch whisky industry is concerned is because we haven’t taken shortcuts," he said.
But Driver said he was ready for the controversy that would meet the launch of the pure malt that it first dreamt up two years ago.
He revealed that limited inventory and growing popularity of single malts had been a looming "crisis point" for Diageo since the company was created in 1997 from the merger of Guinness and GrandMet. It has been selling its Lagavulin single malt at capacity for the past four years. Oban, which sells 64,000 cases a year, has since followed suit, and Dalwhinnie is not far behind in hitting the ceiling of supply.
But Driver rejected the idea that the pure malt concept could be spread to the rest of his portfolio. He said: "Our Lagavulin consumers would have simply rejected the whole proposition."
However, he argues that Cardhu, which has become the fastest-growing malt whisky in the world, is another matter.
"To a Cardhu consumer, to say it comes from a small valley on Speyside is just a little bit too much information when there is so much else that people adore about it," he said, predicting others would follow suit to grow their brands globally.
Driver will appear before the all-party Scotch Whisky Industry group again this Thursday. Article Courtesy of The Scotsman
MPs take shot at resolving Cardhu crisis SENIOR Westminster MPs are trying to end the dispute over plans to change the make-up of one of Scotland’s top malt whiskies.
Diageo, which has its Scots HQ in Edinburgh, wants to end the production of Cardhu single malt and instead produce a blend of different malts.
They want to label this as "pure malt’’, claiming that existing stocks of the original product are running low.
But small single malt producers are outraged at this potential dilution of their major selling point. Some rival producers - including John Grant, who produce Glenfarclas - are threatening legal action.
William Grant and Glenfiddich are also outraged. They have warned of major sales slumps in the key United States and Japanese markets if the change goes ahead.
The meeting was hosted by Angus Robertson, Scottish Nationalist MP for Moray - home to 50 per cent of Scotland’s distilleries including Cardhu, and included Treasury Select Committee chairman John McFall, who represents Dumbarton.
Following the meeting Diageo has committed itself to talks to try to resolve the dispute, saying it would discuss "concrete solutions".
Over recent weeks the bitter dispute has divided the whisky industry, which has seen threats of legal action and a possible split in the industry body the Scotch Whisky Association.
Speaking after the meeting Mr Robertson MP, who is vice-chairman of the All-Party Scotch Whisky Industry group, said: "This is a positive development and we sincerely hope that realistic proposals will be made next week by Diageo to help end this damaging crisis." Articles Courtesy of The Scotsman
CL distillers chief quits THE chief executive of East Kilbride-based distillers CL World Brands has unexpectedly quit following an announcement that the chairman of its Trinidadian parent firm wanted to be more hands-on in the day-to-day running of the business.
Ian Bankier’s departure will raise questions over the future base of the company, formed last year.
Arnaud de Trabuc, executive director of strategic affairs for CL World Brands, insisted the company would continue to be headquartered out of East Kilbride.
CL World Brands distills the Bunnahabhain and Black Bottle whisky brands and was formed last year through the acquisition of the Burn Stewart distillery by Trinidad and Tobago conglomerate CL Financial. Articles Courtesy of The Scotsman
Edrington moves to reshuffle board IAN Curle, the chief executive-in-waiting of the Edrington Group, the maker of the Famous Grouse and The Macallan whiskies, moved yesterday to strengthen his board with the appointment of two new executive directors and a restructuring of the business.
Graham Hutcheon, previously distillation director, based at The Macallan Distillery on Speyside, succeeds Curle as group operations director, while Bill Farrar, who masterminded The Famous Grouse’s quirky TV adverts, is promoted to group sales and marketing director.
Barrie Jackson, a main board director for the last nine years, is promoted from sales and marketing director to a new role as group strategy director and will concentrate on directing the group’s future strategy.
Curle, 42, who was appointed deputy chief executive in May, succeeds Ian Good as chief executive next April to become the youngest chief executive in Edrington’s 150-year history.
Curle said he hoped the moves would strengthen the business, which has doubled in size in the last four years, and will put it in good shape for the tough challenges that lie ahead in the international marketplace.
Earlier this year, Edrington sold its Bunnahabhain and Glengoyne distilleries to Burn Stewart Distillers and Ian Macleod respectively, in deals analysts said were worth more than £20 million.
The move was part of a strategic change in the company to focus on its four main brands, The Famous Grouse, The Macallan, Highland Park and Cutty Sark.
In July the firm reported a 24.6 per cent increase in pre-tax profits to a record £61.7m while turnover rose 14.9 per cent to £230.7m. Articles Courtesy of The Scotsman
Scotch on the rocks over Diageo THE Scotch Whisky Association has been thrown into chaos over an unprecedented split between Diageo, Scotland’s largest whisky producer, and the rest of the industry.
Members of the SWA, the industry’s trade body, will put intense pressure on Diageo to reconsider its decision to axe its Cardhu single malt brand when its governing council meets next month... Click here for full story Articles Courtesy of The Scotsman
Allied Domecq denies SWA pull-out threat ALLIED Domecq denied last night that it was on the verge of quitting the Scotch Whisky Association (SWA) in protest against the inaction over Diageo’s decision to turn its Cardhu single malt Scotch whisky into a vatted malt. A spokesman for Allied said there was "no truth in the rumour whatsoever", but added that Allied are "extremely concerned about this issue and the reputation of single malt".
The row erupted after it emerged that Diageo has substituted the contents of its 12-year-old Cardhu single malt, taken from one source, with a vatted malt, blended from a number of Speyside distilleries. It is a move that many believe will damage the integrity and authenticity of every category of whisky produced in Scotland. A spokesman for the SWA said it was discussing the change with Diageo. Articles Courtesy of The Scotsman
Festival aims to boost autumn tourism levels ABOUT 140 events are planned in the ten-day Borders Banquet festival, including cookery demonstrations, murder mystery dinners, wine and whisky tastings and art evenings.
Funded by Scottish Enterprise Borders, it is designed to boost tourism at a traditionally quiet time of the year, said Alan Elliot, tourism business manager at SEB.
Last year it brought in an estimated £150,000, up 29 per cent on the event’s inaugural year.
Elliot said: "Official figures show that 25 per cent of all tourism spend is on food and drink.
Last year we saw a large increase both in average food and drink sales and in the number of bed nights sold as people use the event as a reason to come to the region for a short break." Articles Courtesy of The Scotsman
Whisky firm falls into red MORRISON Bowmore, the whisky distiller, has fallen into the red because of costs associated with a distribution venture in Uruguay.
The Sociedad Anonima joint venture with the Uruguayan government cost Bowmore £700,000 in 2002, and the company has now exited the business.
The venture, along with a move away from sales of cheaper bulk blended whisky, saw Bowmore post a loss of £1.1 million for the year, compared with a profit of £948,000 in 2001. Articles Courtesy of The Scotsman
Bottling plant is pretty dram fast SCOTLAND’S fastest whisky bottling plant, capable of producing 600 bottles every minute, has been officially opened by the Edrington Group.
The maker of brands such as Famous Grouse and the Macallan has invested £3 million in the high-speed bottling plant at its Glasgow premises.
The construction of the new plant on Great Western Road saved 50 jobs at the 150-year-old company and is aimed at ensuring the £800m Scottish industry continues to grow.
First Minister Jack McConnell, who officially opened the plant, said: "Scotland’s whisky industry is one of the most important elements of our economy, and its global reputation is stronger than ever.
"Its success plays a strong part in attracting visitors to Scotland and one in 50 Scottish jobs depend on this most famous of industries." Articles Courtesy of The Scotsman
